Taiwanese Financial Supervisory Commission (FSC) and Taiwan Central Bank labels Bitcoin as a commodity instead of a currency. Both authorities refrain from regulating and managing the digital currency.
Earlier this month, Taiwanese Financial Supervisory Commission (FSC), Tseng Ming-Chung declared Bitcoin as illegal in the country. This declaration follows after a recent high-profile kidnapping incident whereby random demands were made in Bitcoin in October.
Due to its convenience, Bitcoin transactions have been increasingly accepted in Taiwanese convenience stores. Earlier last month, Taiwanese Bitcoin exchange, BitoEx formed a partnership with Family Mart, a convenience store chain with 2, 986 outlets in Taiwan. This partnership allowed customers to purchase Bitcoins through the store’s digital kiosks.
This called for the FSC to look into the issue, especially after their actions in banning the installation of Bitcoin ATMs in the country.
On Wednesday, the regulator announced that they now see Bitcoin as a commodity, alongside Taiwan’s Central Bank, instead of a currency. Therefore, both agencies will keep their hands off the regulation and management of this digital currency.
Nonetheless, Chairman Tseng has called on local banks to not accept Bitcoins for third-party transactions.